The National Budget: What Wanjiku expects ahead of the reading

By Juma / June 13, 2019




The National Budget for the 2019/2020 financial year will be presented in parliament today (Thursday 13th June) by the Treasury CS Henry Rotich.

As the budget reading nears, Kenyans feel the budget is not designed to favor them but those in power. According to the majority of Kenyans, the budget has failed to capture the more pressing needs and focused on projects that will not have a direct impact on the common mwananchi.

Most Kenyans feel the budget should have been tailored towards addressing the escalating prices of commodities, especially foodstuffs. For instance, the price of maize is out of reach for most Kenyans across the country.

A 90-kilogram bag of maize is retailing at an average of 3,600 shillings across the country, up from just 1,800 shillings three months ago. In some areas, the price of the 90-kilogram bag of maize has hit the 4,000 shilling mark.

The increase in prices of maize has led to an increase in the price of maize flour by more than 30 percent. A 2-kilogram packet of maize flour is retailing at between 115 and 130 shillings from just 85 shillings three months ago.

Prices of fuel have also continued to rise over the months with the government having imposed an 8 percent Value Added Tax on all petroleum products. An increase in fuel prices, especially diesel, leads to an impact on the inflation rate as it increases the cost of basic commodities.

Meanwhile, in the budget

The Budget and Appropriations Committee (BAC) has increased the overall budgetary allocation to the National Government by 24.9 billion shillings to 1.93 trillion shillings bringing the overall budget to 3.1 trillion shillings.

The increased allocation by BAC is towards public finance management (8.9 billion shillings), vocational and technical training (8.3 billion shillings) and ICT infrastructure development (6.4 billion shillings) vote items.

On the other end of the spectrum, funding towards primary education, secondary education, and the blue economy has been decreased by 1.5, 1.2 and 1.3 billion shillings respectively, from the draft budget estimates.

Recurrent expenditure accounts for 63.6 percent of the total national government expenditure while development spending accounts for the remaining 36.4 percent.

The major items under recurrent expenditure are Operations & Maintenance and Wages and Salaries. Development spending remains a key concern going by past budget performance, in particular with regards to absorption of funds and stalled projects.

With National Treasury targeting a 10.0 percent return on public investments, it is of necessity that higher quality and viable public projects should be pursued and implemented. The focus should also be towards the tradable sectors in order to boost the trade imbalance

The overall allocation to the mandatory charge, Consolidated Fund Services (CFS), is 805.8 billion shillings in FY2019/20; 12.2 percent y/y decline from FY2018/19 estimate of 918.1 billion shillings.

This is mainly attributed to the decline in public debt from 832.1 billion shillings in the current financial year to 696.6 billion shillings in FY2019/20.



About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: [email protected]

View other posts by Juma


More Articles From This Author








Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2019
  • January 2019 (256)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (251)
  • July 2019 (339)
  • August 2019 (293)
  • September 2019 (307)
  • October 2019 (158)
  • 2018
  • January 2018 (291)
  • February 2018 (219)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (238)
  • June 2018 (178)
  • July 2018 (257)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (187)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (174)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950